"Having broken away from Luwu District in 2001, the Luwu Utara District Government has faced many problems in its three years of implementing decentralization. The obstacles to implementing decentralization were due mainly to the inconsistency of national laws and regulations, unclear division of responsibility and authority between district, provincial and central governments, an unfair balancing mechanism for reforestation funds between producing and non-producing districts, increased claims of tenure by local communities, low levels of public participation in decision-making processes and a lack of spatial planning at the district level. By using an inclusive decision-making process for the research process, this study helped the district government and local communities to look at underlying causes of problems in implementing forestry sector decentralization in their areas and to find alternative solutions to these problems. As a result, the district Forestry Office has undertaken many activities in direct response to the outcomes of this research project, such as a social forestry programme for local forest-dependent communities and the adoption of more inclusive processes for district forestry planning. There have also been changes in attitudes to customary rights over natural resources, and the provision of technical assistance and capacity building for rural forest dependent farmers. The study concludes that the framework for forestry decentralization needs to be reformed to promote better and more accountable forest management, at the regional and central levels, and to give the district governments more room to manage their own resources in the interests of the poorest forest-dependent people in their areas."